The World Bank has announced that 8 African countries have been classified as upper-middle-income economies, marking a significant milestone in the continent's development progress. This classification is based on the Gross National Income (GNI) per capita, which is calculated by summing the value added by resident producers, product taxes, and net receipts of primary income from abroad.

The 8 African countries that have made it to the upper-middle-income economy category are Algeria, Botswana, Equatorial Guinea, Gabon, Libya, Mauritius, Namibia, and South Africa. This classification is a testament to the efforts of these countries' governments in driving economic growth and implementing strategic policies, institutional reforms, and targeted investments.

The World Bank categorizes economies into four income groups: low, lower-middle, upper-middle, and high, with income measured by GNI per capita in US dollars, converted using the World Bank Atlas method. For the 2025 fiscal year, low-income economies are defined as those with a GNI per capita of $1,145 or less, while lower-middle-income economies have a GNI per capita between $1,146 and $4,515. Upper-middle-income economies, like the 8 African countries mentioned, have a GNI per capita between $4,516 and $14,005, and high-income economies exceed $14,005.

Regional integration, trade expansion, and initiatives like the African Continental Free Trade Area (AfCFTA) can accelerate growth, boost competitiveness, and increase economic resilience in these countries. By implementing these measures, African governments can create the conditions necessary to move from low-income to middle-income and, eventually, high-income economies.

According to the World Bank data, 26 countries are classified as low-income economies, with 22 being African. There are 51 lower-middle-income economies, including 21 African countries. Seychelles is the only African country among the 86 high-income economies, standing out as the only country on the continent classified in the "very high" human development (HDI) category.

Over time, several countries have taken the initiative to improve their citizens' lifestyles, moving from one income group to the next higher group. Since the 2000s, 39 countries have advanced to the middle-income rank, with 63 countries previously being home to over 60% of the 1.8 billion people living in extreme poverty (Low income economies). However, the pace at which low-income countries (LICs) are moving up the income ladder has significantly slowed in recent years due to worsening internal and international circumstances, according to a World Bank report.

This development is a positive sign for the African continent, indicating that many countries are making progress towards improving their economic situations. As these countries continue to implement strategic policies and investments, they can create a better future for their citizens and drive economic growth in the region.

For more information on the World Bank's classification and the progress of African countries, read the full report.